Hollywood writers and actors are on strike simultaneously for the first time in six decades — a cataclysm for hundreds of thousands of film and TV workers already idled by the entertainment industry’s growing labor strife. The Screen Actors Guild, representing some 160,000 performers, announced a walkout Thursday after failing to reach a new labor agreement with the Alliance of Motion Picture & Television Producers, representing studios including Walt Disney Co. and Netflix Inc. The two sides are far apart over how much to pay actors for residuals, which are paid to performers when their movies and shows are rerun. The union also demands more money to offset declining film and TV production budgets. It says the rise of streaming companies and the drive to own and control content globally are reducing the number of jobs.
Despite the uncertainty, studios plan to continue producing TV and film. The AMPTP said the union’s decision was its own and is “disappointed in the failure of their membership to reach an agreement on new terms.”
A strike by SAG actors will halt all scripted movie and TV production and delay new releases. It would also cut into advertising revenues, which rely on fresh programming to keep viewers returning and fill seats in theaters or streamers’ lineups. According to the union, it could also cost the economy tens of millions of dollars a day.
The SAG-AFTRA members include actors, TV newscasters, stage and radio performers, and stunt and background actors. They make up the largest segment of Hollywood’s workforce. The union says the writers and the AMPTP are at an impasse in talks because the studios will not agree to a significant increase in compensation for residuals, a bigger share of the profits from online distribution, and protection against the use of artificial intelligence to replace actors’ likenesses.
Studios have been preparing for an actor strike for months. They are already making contingency plans, such as pulling the plug on unfinished projects or shifting filming locations to avoid picket lines. Many independent producers relying on third-party financing require completion bonds from insurers, which are less willing to issue them in the face of a work stoppage by SAG actors. Despite the jitters, some producers still push for early negotiations with SAG leaders to avoid a lengthy shutdown.
The looming strike has prompted some stars to take public stands on the issue. Actors such as Robert Downey Jr., Emily Blunt, and Matt Damon have joined other unions, such as the International Association of Theatrical Stage Employees, to urge SAG leader Alan Rosenberg to speed up contract talks. They have taken out full-page ads in Hollywood trade papers and lobbied SAG governing body members to call for immediate talks. However, SAG’s leadership, which campaigned on a tough stance, says it will not be ready to start contract talks until at least April.
